Monday, July 16, 2012

There is no way out.

Our most revered Agriculture Minister, speaking recently at a rally of gram panchayats, said," Improving the well-being of farmers is difficult unless agriculture sheds come of its population. At least one member from the farmer's family should seek livelihood opportunities outside agriculture." That should be no problem at all. According to the Labor Bureau unemployment rate last financial year was 3.8% compared to 9.4% in 2009-10. Of this 48.6% were self employed, 19.7% were wage or salary earners and 31.7% casual labor. The National Sample Survey Organisation puts the unemployment rate for 2009-10 at a minute 2%. Director General of the Labor Bureau, DS Kolmakar said," Our unemployment level is much better than that of other countries like US, Spain and South Africa." Anything below 4% can be considered as full employment because there will always be some people who have stopped working voluntarily, for instance women stop working to have babies and others to prepare for entrance exams to management studies or to take the GRE to emigrate to the US. Hence no one should have any problem finding jobs. In fact, we should expect a mad scramble by companies to find employees and every Indian should be middle class. Trouble is that most farmers are illiterate and job opportunities are limited. Vast numbers of rural poor are migrating to cities every year but, being illiterate, they can only find manual labor. Property prices and rents are so high in any city that they are forced to live in slums. But living in wretched conditions in a shack with no electricity, water connection or bathrooms is not free. Goons working for local politicians extract rent money by force although the land belongs to the government. Travel is expensive so they have to find work near their residence which may not always be possible. Any illness means loss of earnings and expensive medicines leading to starvation. It is not surprising that farmers are not keen to look for work outside their villages. Since the MNREGA scheme was started finding casual labor and domestic servants has become almost impossible. Wages have risen and one would expect more rural poor to look for work elsewhere but living conditions are so wretched that they do not dare. Instead of just handing out money the government should pay these people where they are to build roads, sewer systems, waste treatment plants, electricity generation from renewable sources and telecom infrastructure. That will create jobs and opportunities for setting up small scale industries. The central government spends Rs 591.43 billion on 34.1 million employees. Get rid of half of these useless fellows and spend the money on useful work. Since unemployment is vanishingly small they will have no trouble finding jobs. Is the revered minister listening.

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